How to improve family finances?

Financial experts advise that you should not set general goals, but need to create a specific, achievable plan.

A recent survey by the Principal Financial Group (USA) showed that 71% of respondents want to improve their family’s financial situation by 2022.

Jay Zigmont, founder of financial planning company Live, Learn, Plan in Mississippi, said that, once a specific goal is set, it’s easier for you and your family members to break it down into small goals. and work together to make them happen.

According to experts, there are solutions you can apply in your family to improve your financial situation in the new year.

Choose a cohesive experience instead of a material focus

Years ago, you used to spend a lot of money on gifts during the holidays. These items can make people happy for a moment, but not for a long time.

Instead of spending money on expensive gifts and expensive trips, you can choose simpler experiences like going camping, says John Rumsey of a property management company in Raleigh, North Carolina (USA). camp, go to the zoo, the local museum… Research shows that children develop a greater sense of family attachment through activities they experience together, rather than the material things they receive.

Family budget update

According to experts, you should look back at the family budget of the past year (2021), from which you adjust and update the family’s general spending budget this year accordingly. Through it, you can see how you and your partner have spent the past year and need to change in the coming year to match the common goals of the whole family.

Have a specific savings plan

If your family is still in debt or if you have an important plan in the new year, for example buying a house, repairing a house, buying a car, a money saving plan is very necessary. “By creating a savings plan for 2022, you and your family will establish healthy financial habits and have better financial security in 2022,” says financial expert Ellis.

According to Ellis, you should set a savings goal with a specific number with your partner, set up a joint savings account, and cut a certain percentage of your income into it each month.

Cut down on dining and entertainment budgets

The question should be asked: Last year, did your family travel too much, eat out too much? Jessica Weaver, author of Confessions of a Money Queen (Confessions of a money queen) recommends setting a goal to limit that habit. You can implement this plan with basic initial steps such as cooking at home instead of going out to eat, choosing a place to hang out near home instead of long trips… That extra money, you can deposit into savings.

Thuy Linh (According to GoBankingrates)


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